Transcorp targets 10,000bpd, 1,980mw power

Management of Transnational Corporation (Transcorp) Nigeria Plc said at the weekend that it is targeting 10,000 barrels per day from Oil Prospecting Lease (OPL) 281 by year 2020 as well increased generation from Ughelli power Plant to 1,980mw by year 2017.

OPL 281, it would be recalled, was awarded to Transcorp in an oil bid round in 2005 but was revoked the following year. But earlier in 2007, the Department of Petroleum Resources (DPR) reversed its decision and subsequently re-awarded the block back to Transcorp. The block contains 4 trillion cubic feet of gas and about 107 million barrels reserves.

Speaking in Lagos, the chief executive officer of the corporation, Obinna Ufudo, said with the payment of the mandatory $75,000 signature bonus in May this year and signing of Production Sharing Contract (PSC) with the federal government, Transcorp, along with its partners, SacOil and EER, have progressed to the next stage of conducting seismic study.

He said the corporation is set to explore opportunities of oil and gas assets available from ongoing divestiture of onshore assets by the international oil companies and sale of marginal oil fields by the federal government.

Ufudo said the corporation would be expecting first oil from the block at between 3,000 to 5,000 barrels per day in 2015, emphasising that this would progressively move to 10,000 barrels per day by 2018.

On Ughelli power plant which was acquired at $300 million, Ufudo said the plant is currently generating over 400mw against 160mw upon take over last year.

This, according to him, would rise to 680mw at the end of 2014; 1,150 mw by 2015; 1,600mw by 2016; and 1,960mw by 2017.

On the corporation’s investment in the hospitality industry, the chief executive officer said arrangements have been completed by the corporation to have combined hotel capacity of 1,800 rooms in Ikoyi, Warri, Port Harcourt and Ikeja.

He said Abuja Transcorp hotel would be upgraded while a new one would be constructed with about 200 unit apartment complex within the hotel.

“By 2017, a total of 1,800 rooms would be available, representing the largest portfolio of hotel assets owned by any investor in Nigeria,” he said.

In agriculture, Ufudo said the corporation is investing in cassava and rice processing facilities, and is setting up a 5,000 hectare orange and mango farm under a farm arrangement with international partners while a 120,000 metric tons juice concentrate factory is being proposed. Currently the factory has the capacity for 26,500 metric tonnes.